Which of following statements is true?
A)Managerial accounting focuses on historical transactions.
B)Financial accounting focuses on future data.
C)Management accounting focuses on relevant data.
D)Managerial accounting uses the cash basis for recording transactions.

Question

Quizplus · Accepted Answer

Management accounting focuses on providing relevant data to internal decision makers, whereas financial accounting focuses on providing financial statements for external stakeholders. Managerial accounting may use either the accrual or cash basis for recording transactions, depending on the needs of the organization. Option A is incorrect because managerial accounting also focuses on providing relevant information for decision making in the future, not just historical transactions. Option B is incorrect because financial accounting is primarily concerned with recording past transactions and reporting on the financial performance of an organization. Option D is incorrect because managerial accounting may use either the accrual or cash basis for recording transactions.

Which of Following Statements Is True